1. Anna University, Chennai
SSM School of Management and Department of Management Studies Komarapalayam
BA7103 Economic Analysis for Business- Model Examination
Date: 16.10.2015 Duration: 1.30 Hr. Max.Marks: 50
Part- A (Answer All the Question) (10x2=20)
1. Define scarcity.
2. Write note on PPF.
3. What is mean by economic of scale.
4. What is derived demand?
5. What is monopolistic competition?
6. When an imperfect market occurs?
7. Define multiplier.
8. What is aggregate demand and supply?
9. Define deflation.
10. What are the money market instruments?
Part- B (answer all the question) (5x13=65)
11. a) i). How can economic growth and stability be balanced? (7)
ii). “Scarcity and efficiency are the twin themes of economics.” Discuss.(6)
(OR)
b) Enumerate the economic role of government and markets. Examine their role in the present economy
scenario.(13)
12. a)’Economies of scale may be either external or internal – they may be technical, managerial financial or risk
bearing’ – Elaborate.(13)
(OR)
b) Discuss the types of elasticity of demand and supply with suitable illustrations.(13)
13. a) i) Differentiate the perfect and imperfect market.(7)
ii) Discuss about the factors influencing the price and market. (6)
(OR)
b) “Demand for labour reflects marginal productivity.” Discuss. (13)
14. a) Explain the process of determination of national income (13)
(OR)
b) Critically examine macroeconomic aggregate and the performance of economy. (13)
15. a) i) Discuss about money market. (7)
ii) Write about the roles of monetary policies. (6)
(OR)
b) Discuss about unemployment and its impact in the national economy.
Part – C (Compulsory) (1x15= 15)
Case study: Earls Court Gym?
The management at Easyloan Bank is interested in offering a corporate fitness programme for its employees. It has
decided to offer a 50 per cent subsidy to all who participate. The gym has agreed to offer the bank a 20 per cent
discount on all fees for its employees, provided that they all have the same terms of membership. The banks
Management observes from the membership information (Table 6.3) that there are various membership options.
From a survey of its employees it establishes that they would use the gym only. Of their visits, 75 per cent would be
during weekdays and 25 per cent at weekends. Half their weekday visits would be before 12 noon and the other half
would be after 5 p.m.
Questions
1 Identify the feasible membership options and express these as cost functions for the bank.
2 Draw a graph showing the above options and explain how the bank’s management should select the optimal one.
Subject incharge HOD
